In a stark decline, trading activity on Binance.US has reached alarming lows in September, marking a challenging period for the cryptocurrency exchange. According to data from Amberdata on The TIE Terminal, on September 16, Binance.US reported a trading volume of just $5.09 million. This decline is particularly notable when compared to the same date in the previous year, when trading volume stood at a substantial $230 million.
The lowest point for trading activity in September was recorded on September 9, with a meager $2.97 million in volume. This drastic drop in trading can be attributed to a series of challenges faced by Binance.US, the United States offshoot of the global crypto exchange Binance.
One significant factor impacting the exchange’s operations is the legal troubles it faces. On June 5, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against both Binance and Binance.US, alleging violations related to unregistered securities offerings and wash trading, among other infractions. The SEC claimed that Binance.US failed to register as a broker-dealer and neglected to register its staking-as-a-service program.
In response to the lawsuit, Binance.US suspended trading for over 100 token pairs, contributing to the decline in trading activity. Additionally, the exchange has faced internal challenges, with the departure of key executives, including CEO Brian Shorder, Head of Legal Krishna Juvvadi, and Chief Risk Officer Sidney Majalya.
These departures have been linked to an ongoing investigation by the U.S. Department of Justice into Binance, CEO Changpeng “CZ” Zhao, and Binance.US. CZ defended Shorder’s departure, stating that he was taking a “deserved break” and acknowledging his contributions to the company.
However, Binance.US’s troubles continue to mount, with the SEC accusing the exchange of non-cooperation in the ongoing investigation, citing a lack of document production. Furthermore, a recent court order on September 15 granted the SEC’s motion to unseal documents related to the case, potentially shedding more light on the situation in the coming days. Binance.US’s future remains uncertain as it navigates these legal and operational challenges.
